The Reserve Bank of Australia has announced the cash rate will remain at 2% in March, for the tenth month in a row, although many economists are predicting that the streak won't last.
Read more...The RBA has met for the first time in 2016 amid less than optimal global conditions, announcing that the official cash rate will remain unchanged at 2% for the ninth month in a row.
Read more...Economist’s predictions have proved correct as the RBA announced today that the official cash rate will once again hold steady at 2% throughout the holiday season.
Read more...The Reserve Bank of Australia is the body who sets the official cash rate, which is the standard against which banks set their own interest rates.
The RBA meets on the first Tuesday of every month and discusses the state of the national economy, including things like consumer confidence, inflation, economic growth and employment levels. Based on these factors, the official cash rate either decreases, increases or stays the same.
This system is designed so that higher rates will discourage borrowing and spending, therefore lowering inflation. Lower rates do the opposite, increasing Australians’ ability to borrow and spend money, boosting the economy.
For the most recent information on the RBA cash rate, read our monthly reserve bank interest rate summary.
A fixed interest rate means that the interest on your loan or savings is locked in at a certain value, and isn’t affected by rises or falls in the market. This can be both a blessing and a curse, but if you like a sense of certainty with your finances, a fixed interest rate might be for you. A fixed interest rate makes budgeting easier, because you’ll know what the amount will be each month, whether it’s a repayment or extra money in your account.
Variable interest rates are more flexible, and shift with the market. They are also based on the RBA’s official cash rate, but unlike a fixed interest rate, they don’t lock in at any time. So if your loan or savings are working on a variable interest rate, the amount of interest you pay or earn can change day-to-day.
So you’re buying a new home, setting up a business or searching for a new car? Then you’re probably looking for a loan to make your dreams possible.
It’s important to do some research before you go ahead with choosing a lender, because the current interest rate will affect not only your monthly repayments, but how much you ultimately spend at the end of your loan term.
The goal is to secure a low interest rate on your loan to minimise the amount of interest you’ll need to pay, but that isn’t all you need to consider. Fees, charges, penalties and extra features are all things you need to take into account when choosing the best loan.
It might seem like a hard task, but it’s made easier by using the comparison rate. This is a rate that providers are required by the National Credit Code to show, and it factors in interest, fees and charges for a clearer picture of the real cost of a loan. That’s why, when you’re comparing products on Mozo, whether it’s home loans, car loans or personal loans, you’ll see an interest rate and a comparison interest rate.
Handy right? But there is one thing to keep in mind when using the comparison rate - it is a guide based a specified loan amount and timeframe (which is shown on Mozo’s comparison pages). Different loans will mean different comparison rates, so to find out exactly what you’ll be paying in interest, talk to your lender.
When you’re looking to make the most of your savings by earning as much interest as possible, your needs will be different depending on your goals. If you’re saving for a short term goal, a savings account with a high introductory interest rate might be just the boost your savings stash needs. Or, if you’ve got a decent chunk of funds but don’t need to access them, a term deposit might be a better space to park it for a while.
No matter how long you’re putting your savings away, the goal is to get a high return on your money, which means securing a high interest rate.
You should also consider special promotions like introductory interest rates or bonus interest rates, and be wary of account or transaction fees. Things like savings accounts or term deposits don’t show a comparison rate to keep track of these extra considerations, but here at Mozo, we’ll show them to you on our comparison pages.
We can’t stress enough the importance of comparing interest rates before you make a decision about your finances! At Mozo, that’s what we’re all about, but we know it can sometimes be hard, because not only do you need to consider the best interest rate available, but also any extras fees and charges that you might get hit with. So we’ve made it easier with some tools and resources that will guide you through securing yourself a great interest rate.
Check out our comparison pages! This is the first stop when looking for a great interest rate. You can see a side-by-side comparison of all the best offers on the market.
Take a look at our easy to use calculators. Whether you’re working out what your loan repayments will be or planning your savings goals, we’ve got a calculator ready to crunch those numbers!Read our dedicated guides. For a more in depth explanation check out our guides which cover everything from working out how much you can afford to borrow on your home loan, to how to make the most out of your savings account.
For more information on interest rates for different banking products, and for help understanding what interest rates are and how they work, visit our interest rates guide page.
Mortgage House
Advantage Discounted Variable Home Loan 70 (Owner Occupier)
Bank Australia
Basic Home Loan Full Salary Credit (Owner Occupier)
UBank
UHomeLoan - Value Offer (Owner Occupier, Principal & Interest)
IMB Bank
Budget Home Loan (LVR<80%, Owner Occupier)
Bank Australia
Basic Home Loan (Owner Occupier)
